Question : Choose the correct sequence order for the payment of liabilities made from sale of assets at the time of dissolution of partnership firm. (i) Loan advanced by partners (ii) Outside debt (iii) Capital amount of partners.

Option 1: (ii), (i), (iii)

Option 2: (i), (ii), (iii)

Option 3: (iii), (ii), (i)

Option 4: (ii), (iii), (i)

Question : At the time of dissolution of the firm, the partner's loan to the firm is paid out of the amount realised from the sale of assets

Option 1: after payment of outside liabilities but before repayment of capital.

Option 2: after payment of outside liabilities or capital.

Option 3: before payment of outside liabilities.

Option 4: after payment of capital of partners.

Question : The dissolution of partnership between all the partners of a firm is called:

Option 1: Reconstitution of partnership firm

Option 2: Dissolution of partnership

Option 3: Dissolution of partnership firm

Option 4: Any of the above

Question : Arrange the following steps in proper sequence in the context of the retirement of a partner, when total capital of new firm = Aggregate of Adjusted Capital of remaining partners.
I. Calculate New Capital of the remaining partners by dividing Total Capital of the new firm in their New Profit-sharing Ratio.
II. Find Surplus Capital/Deficit Capital of each continuing partner by comparing the New Capital with the Capital after Adjustments.
III. Calculate Total Capital of the new firm as follows.
IV. Calculate Adjusted Capitals of the remaining partners after adjustments.

Option 1: I,II,III,IV

Option 2: IV,III,I,II

Option 3: IV,III,II,I

Option 4: I,III,II,IV

Question : On dissolution of a firm, realisation account is debited with :

Option 1: All outside liabilities of the firm

Option 2: All assets to be realised

Option 3: Any asset taken over by one of the partners

Option 4: Cash received on sale of assets

Question : On dissolution of the firm, what payment is made first from the personal assets of a partner?

Option 1: Firm debts

Option 2: Private debts

Option 3: The firm's debt and private debt both

Option 4: None of the above